Feeds

Your Communications seeks buyer

'Get in the hole!'

  • alert
  • submit to reddit

Boost IT visibility and business value

United Utilities - the FTSE 100 energy and water outfit - has reacted coolly to a weekend report that it is seeking a buyer for its B2B telco Your Communications. The Sunday Telegraph reports that Ernst & Young has been hired for the sale after United Utilities ruled out floating the company.

Instead, it seems that United Utilities is keen for a trade sale with analysts quoted by the paper claiming it could be worth £200m. Your Communications provides voice, data and mobile services and notched up revenues of £185m last year.

Responding to the report, United Utilities said it has never made any secret of the fact that Your Communications is not an "integral part of its core business" and "will look to exit the business at a point in time when shareholder value can be maximised".

In a statement the company said: "As a result, we, with our advisers, continue to look at the various strategic options for an exit. However, no formal disposal process is in train, and although Your Communications is a natural candidate for the further consolidation that we believe is eventually inevitable within the telecommunications industry, we are not aware of any such consolidation process at present."

As a result, it's business as usual as the company's focus "remains on growth and profitability for Your Communications".

Confirmation that United Utilities is happy to get rid of Your Communications is yet further evidence of the consolidation with the sector. Last week it emerged that Exeter-based ISP, Eclipse, could be about to become the latest operator to be swallowed up by the big boys amid reports that it is looking for a buyer.

In May, Cable & Wireless bought Bulldog for £18.6m, while in August, Pipex snapped up Nildram £12.9m. Last month also saw Telstra Europe Limited - a wholly-owned subsidiary of the giant Australian telco - acquiring the UK business of ISP PSINet Europe for £50m. ®

Related stories

Eclipse keeps schtum on sale rumour
Eclipse stars with BT's Wi-Fi network
Eclipse unveils flexible, boostable broadband
C&W buys Bulldog
Pipex swallows Nildram

The Essential Guide to IT Transformation

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.